Tata Motors on Tuesday increased prices of its passenger vehicles by up to Rs 35,000 with immediate effect to offset the impact of infrastructure cess proposed in the Budget 2016-17.

“In line with the cess levies from the Budget announcement, we are increasing the prices of our passenger vehicles with immediate effect,” a Tata Motors spokesperson told PTI.

The increase in the passenger vehicles will be in a range of about Rs 2,000 to Rs 35,000, based on the exact cess amount for the specific category, the spokesperson added. Tata Motors sells a range of passenger vehicles, ranging from entry-level small car Nano to premium crossover Aria, priced between Rs 2.04 lakh and Rs Rs 15.79 lakh (ex-showroom Delhi).

The government has decided to impose 2.5 per cent cess on diesel vehicles of length not exceeding 4 meter and engine capacity not exceeding 1,500cc, while higher engine capacity and SUVs and bigger sedans were slapped with a cess of 4 per cent on the value of the car.

These are over an above a cess of 1 per cent on petrol/ LPG/CNG driven vehicles of length not exceeding 4 meter and engine capacity not exceeding 1,200cc. Yesterday, Hyundai Motor India had said that it plans to hike vehicle prices ranging from Rs 3,000 on entry-level small
car Eon to Rs 80,000 on SUV SantaFe, which are priced between from Rs 3.20 lakh and Rs 30.79 lakh.

Honda Cars India also plans to raise prices in a range of Rs 4,000 to Rs 80,000. The company sells six models from entry-level Brio to premium SUV CR-V, priced between Rs 4.27 lakh and Rs 25.23 lakh (all prices ex-showroom Delhi).